This Bud’s for you. InBev acquire Anheuser-Busch
Belgium/Brazilian brewer InBev announced that it will acquire its U.S. rival Anheuser-Busch for $52 billion ($70.00 per share). This combination will create the world’s largest brewer with brands including Stella Artois and Becks in addition to Budweiser.
The all-cash agreement, for $70 per share, or almost $52 billion, would create the world’s largest brewer, uniting the maker of Budweiser and Michelob with the producer of Stella Artois, Bass and Brahma. The two companies would have yearly sales of more than $36.4 billion, surpassing the current number one brewer, London based SABMiller.
The acquisition means control over America’s largest brewer, the No. 2 worldwide, moves overseas. Based in St. Louis, Missouri, Anheuser-Busch has more than 48 percent of American market share with brands that include Bud Light.
InBev (Euronext: INB) is the second largest brewery company in the world. While its core business is beer, the company also has a strong presence in the soft drink market in Latin America. It employs about 86,000 people and is headquartered in Leuven, Belgium.
InBev was created in 2004 when the Belgian company Interbrew and the Brazilian company AmBev merged, creating the world’s largest brewer. InBev has operations in over 30 countries and sales in over 130 countries. In 2006 it had a market capitalisation of €30.6 billion and net profit of €3.2 billion on sales of €13.3 billion (£10.61 billion).